Comprehensive Mastery Examination in
Business Statistics Based on Anderson's
Statistics for Business and Economics,
Revised 13th Edition WITH CORRECT
ANSWERS WELL VERIFIED LATEST EDITION
2026 WITH IN-DEPTH RATIONALE !
SECTION 1: DATA AND STATISTICS (Chapters 1-2)
Question 1:
Which of the following is an example of qualitative data?
A) Annual income in dollars
B) Temperature in degrees Fahrenheit
C) Marital status
D) Number of employees
CORRECT ANSWER: C
Rationale: Qualitative data are non-numeric and represent categories or attributes.
Marital status (e.g., married, single, divorced) is categorical data. Annual income,
temperature, and number of employees are all quantitative (numeric) variables.
Question 2:
A researcher collects data on the number of cars sold by each dealership in a region.
This data is best classified as:
A) Categorical data
B) Cross-sectional data
C) Time series data
D) Ordinal data
,CORRECT ANSWER: B
Rationale: Cross-sectional data are collected at approximately the same point in time
from multiple subjects. Data on multiple dealerships collected at the same time
represents cross-sectional data. Time series data would track a single dealership over
time.
Question 3:
What is the primary difference between a population and a sample?
A) Population includes all elements, sample includes a subset
B) Population is always larger than sample
C) Sample includes all elements, population includes a subset
D) There is no significant difference
CORRECT ANSWER: A
Rationale: A population consists of all elements of interest in a study, while a sample is a
subset of the population selected for analysis. While a sample is typically smaller, the
key distinction is that the population includes all elements of interest.
Question 4:
Which scale of measurement allows for meaningful ratio comparisons (e.g., "twice as
much")?
A) Nominal
B) Ordinal
C) Interval
D) Ratio
CORRECT ANSWER: D
Rationale: The ratio scale has all the properties of interval measurement plus a true zero
point, allowing for ratio comparisons. Weight, height, and income are examples where
"twice as much" is meaningful because zero represents the absence of the attribute.
,Question 5:
A survey asks respondents to rate their satisfaction as "Very Satisfied," "Satisfied,"
"Neutral," "Dissatisfied," or "Very Dissatisfied." This is an example of:
A) Nominal data
B) Ordinal data
C) Interval data
D) Ratio data
CORRECT ANSWER: B
Rationale: Ordinal data have a meaningful order or ranking but unequal intervals
between categories. Satisfaction ratings have a clear order (Very Satisfied > Satisfied >
Neutral > Dissatisfied > Very Dissatisfied) but we cannot assume the differences
between categories are equal.
Question 6:
Which type of sampling method involves dividing the population into subgroups and
then randomly selecting from each subgroup?
A) Simple random sampling
B) Stratified random sampling
C) Cluster sampling
D) Convenience sampling
CORRECT ANSWER: B
Rationale: Stratified random sampling divides the population into homogeneous
subgroups (strata) based on key characteristics, then randomly selects samples from
each stratum to ensure representation.
Question 7:
A marketing research firm selects every 10th person on a list of customers to survey. This
is an example of:
A) Simple random sampling
, B) Stratified sampling
C) Systematic sampling
D) Cluster sampling
CORRECT ANSWER: C
Rationale: Systematic sampling involves selecting every kth element from a sampling
frame. Selecting every 10th person from a customer list is a classic example of
systematic sampling.
Question 8:
Which of the following is NOT a measure of central tendency?
A) Mean
B) Median
C) Mode
D) Standard deviation
CORRECT ANSWER: D
Rationale: Measures of central tendency (mean, median, mode) describe the center of
a dataset. Standard deviation is a measure of variability or dispersion, not central
tendency.
Question 9:
A sample has values: 5, 7, 8, 10, 12, 15, 20. What is the median?
A) 10
B) 11
C) 10.5
D) 15
CORRECT ANSWER: A
Business Statistics Based on Anderson's
Statistics for Business and Economics,
Revised 13th Edition WITH CORRECT
ANSWERS WELL VERIFIED LATEST EDITION
2026 WITH IN-DEPTH RATIONALE !
SECTION 1: DATA AND STATISTICS (Chapters 1-2)
Question 1:
Which of the following is an example of qualitative data?
A) Annual income in dollars
B) Temperature in degrees Fahrenheit
C) Marital status
D) Number of employees
CORRECT ANSWER: C
Rationale: Qualitative data are non-numeric and represent categories or attributes.
Marital status (e.g., married, single, divorced) is categorical data. Annual income,
temperature, and number of employees are all quantitative (numeric) variables.
Question 2:
A researcher collects data on the number of cars sold by each dealership in a region.
This data is best classified as:
A) Categorical data
B) Cross-sectional data
C) Time series data
D) Ordinal data
,CORRECT ANSWER: B
Rationale: Cross-sectional data are collected at approximately the same point in time
from multiple subjects. Data on multiple dealerships collected at the same time
represents cross-sectional data. Time series data would track a single dealership over
time.
Question 3:
What is the primary difference between a population and a sample?
A) Population includes all elements, sample includes a subset
B) Population is always larger than sample
C) Sample includes all elements, population includes a subset
D) There is no significant difference
CORRECT ANSWER: A
Rationale: A population consists of all elements of interest in a study, while a sample is a
subset of the population selected for analysis. While a sample is typically smaller, the
key distinction is that the population includes all elements of interest.
Question 4:
Which scale of measurement allows for meaningful ratio comparisons (e.g., "twice as
much")?
A) Nominal
B) Ordinal
C) Interval
D) Ratio
CORRECT ANSWER: D
Rationale: The ratio scale has all the properties of interval measurement plus a true zero
point, allowing for ratio comparisons. Weight, height, and income are examples where
"twice as much" is meaningful because zero represents the absence of the attribute.
,Question 5:
A survey asks respondents to rate their satisfaction as "Very Satisfied," "Satisfied,"
"Neutral," "Dissatisfied," or "Very Dissatisfied." This is an example of:
A) Nominal data
B) Ordinal data
C) Interval data
D) Ratio data
CORRECT ANSWER: B
Rationale: Ordinal data have a meaningful order or ranking but unequal intervals
between categories. Satisfaction ratings have a clear order (Very Satisfied > Satisfied >
Neutral > Dissatisfied > Very Dissatisfied) but we cannot assume the differences
between categories are equal.
Question 6:
Which type of sampling method involves dividing the population into subgroups and
then randomly selecting from each subgroup?
A) Simple random sampling
B) Stratified random sampling
C) Cluster sampling
D) Convenience sampling
CORRECT ANSWER: B
Rationale: Stratified random sampling divides the population into homogeneous
subgroups (strata) based on key characteristics, then randomly selects samples from
each stratum to ensure representation.
Question 7:
A marketing research firm selects every 10th person on a list of customers to survey. This
is an example of:
A) Simple random sampling
, B) Stratified sampling
C) Systematic sampling
D) Cluster sampling
CORRECT ANSWER: C
Rationale: Systematic sampling involves selecting every kth element from a sampling
frame. Selecting every 10th person from a customer list is a classic example of
systematic sampling.
Question 8:
Which of the following is NOT a measure of central tendency?
A) Mean
B) Median
C) Mode
D) Standard deviation
CORRECT ANSWER: D
Rationale: Measures of central tendency (mean, median, mode) describe the center of
a dataset. Standard deviation is a measure of variability or dispersion, not central
tendency.
Question 9:
A sample has values: 5, 7, 8, 10, 12, 15, 20. What is the median?
A) 10
B) 11
C) 10.5
D) 15
CORRECT ANSWER: A
